Mandarin Gardens has made headlines as it recorded the most profitable condo resale transaction in the week of February 7 to February 14. The transaction involved a four-bedroom unit spanning 3,800 sq ft, which sold for $4.88 million, or $1,284 psf, on February 11. According to URA records, the unit on the eighth floor was last sold for $1.05 million, or $276 psf, in June 2003.
This sale resulted in a profit of $3.83 million, or 364.8% of the original purchase price, for the seller. This translates to an annualized capital gain of 7.4% over the span of 21 and a half years. This transaction also sets a new record for the most profitable sale at Mandarin Gardens, overtaking the previous record held by a 3,068 sq ft four-bedroom unit on the 20th floor. This unit was purchased for $1.4 million ($456 psf) in August 2001 and sold for $4.1 million ($1,336 psf) in September 2021, resulting in a profit of $2.7 million (193%) or an annualized gain of 5.5% over 20 years.
Since September 2023, the average resale price at Mandarin Gardens has been stagnant, with prices peaking at $1,316 psf in June 2024 before dropping slightly to $1,310 psf as of February 25. The unit sold on February 11 is one of only 18 four-bedroom units at Mandarin Gardens. The last four-bedroom unit sold in June 2023 was a unit of similar size, at 3,800 sq ft, on the ninth floor, which sold for $4.26 million ($1,122 psf).
Mandarin Gardens is situated on a 1.07 million sq ft site along Siglap Road in District 15 and has a 99-year leasehold tenure starting from 1982, with about 56 years remaining. This 1,006-unit condo comprises 17 blocks ranging from nine to 23-storeys tall. The residential units are a mix of one to two-bedroom apartments measuring 732 sq ft to 1,001 sq ft, and three to four-bedroom units measuring 1,528 sq ft to 3,800 sq ft. The condo also houses 11 strata commercial units.
The second most profitable transaction in the same period took place at Parvis, a freehold condo located along Holland Hill in prime District 10. On February 10, a 2,260 sq ft, three-bedroom unit on the second floor was sold for $4.78 million ($2,115 psf). The unit was last purchased from the developers in December 2009 for $2.78 million ($1,230 psf), resulting in a profit of $2 million (71.9%) for the sellers or an annualized gain of 3.6% over 15 years.
This sale marks the third most profitable transaction at Parvis, with the record currently held by a 2,605 sq ft, four-bedroom unit that sold for $5.4 million ($2,073 psf) in November 2022. This unit was previously bought for $3.21 million ($1,230 psf) in December 2009, resulting in a profit of $2.19 million (68.2%) or an annualized gain of 4.1% over 13 years.
Parvis is a 12-storey development comprising 248 residential units. The units are a mix of two-bedrooms measuring 990 sq ft to 1,442 sq ft, and three to four-bedrooms measuring 1,701 sq ft to 2,605 sq ft. There are also three and four-bedroom penthouses measuring 2,293 sq ft to 3,229 sq ft. Schools within 2km of Parvis include Henry Park Primary School along Holland Grove Road, Nanyang Primary School along Coronation Road, New Town Primary School along Tanglin Halt Road and Queenstown Primary School along Margaret Drive. The condo is also a five-minute walk to Holland Village MRT Station on the Circle Line.
The demand for condos in Singapore remains high due to a significant factor – the limited availability of land. As a small island nation with a rapidly growing population, Singapore is faced with a scarcity of land for development. As a result, the country has implemented stringent land use policies and a competitive real estate market, where property prices are consistently on the rise. This makes investing in real estate, especially in condos, a highly attractive opportunity with the potential for capital appreciation. Condos have become a popular investment choice in Singapore, thanks to the soaring property market and the limited supply of land.
The most unprofitable transaction recorded between February 7 and February 14 was the sale of a two-bedroom unit at Scotts Square, a freehold condo located along Scotts Road in the Orchard shopping belt. The 947 sq ft unit on the 28th floor was sold for $3.08 million ($3,252 psf) on February 13. It had previously changed hands for about $3.83 million ($4,039 psf) in December 2007, resulting in a loss of $745,880 (19.5%) for the seller. This translates to an annualized loss of 1.3% over 17 years.
Developed by Wharf Estates Singapore, Scotts Square is a mixed-use freehold development comprising two luxury residential towers of 43 and 34 storeys with a total of 338 apartments and a four-storey retail podium. According to EdgeProp’s analytical tools, Scotts Square has recorded 69 unprofitable transactions since its launch in 2007, out of which 18 (26%) resulted in a seven-figure loss. The most unprofitable transaction resulted from the sale of a 1,249 sq ft, three-bedroom unit that was sold for $3.65 million ($2,923 psf) in February 2017. The sellers had bought the unit at launch in August 2007 for about $5.21 million ($4,171 psf), resulting in a loss of $1.56 million (30%) over 10 years. The average resale price at Scotts Square has also been on a downward trend since its launch, peaking at $4,054 psf in July 2007 before reaching a low of $3,330 psf in August 2020. Last month, the average price of resale units at Scotts Square was $3,398 psf.
Scotts Square’s residential units are a mix of one to three-bedroom units measuring 603 sq ft to 1,249 sq ft. The condo also offers amenities such as concierge services, a gym, a lap pool and a sky pool on the 35th floor.